Central Reinsurance Corporation, Taiwan's sole domestic reinsurer, has reported a 59% jump in net profits after tax to NT$1.87bn ($58.83m) for the first six months of this year, compared to the corresponding half in 2023, according to interim financial statements released by the reinsurer.
The net profit for 2Q2024 stood at NT$801.67m, 52% higher compared to NT$527.40m in 2Q2023.
The increase in profits is attributed to higher net investment income and lower claims and benefits paid.
For the first six months of 2024, Central Re’s revenue totalled NT$12.26bn, a year-on-year increase of 11.8%.
Summary of Central Re’s 1H financial performance
|
Central Re
|
1H2024
|
1H2023
|
Y-oY change
|
|
NT$ m
|
NT$ m
|
|
Insurance premiums
|
11,027
|
11,718
|
-5.90%
|
|
Revenue, including investment income
|
12,259
|
10,968
|
11.78%
|
|
Retained earned premiums
|
10,136
|
9,783
|
3.61%
|
|
Claims and benefits paid
|
(6,196)
|
(6,473)
|
-4.28%
|
|
Net investment income
|
2,011
|
1,077
|
86.72%
|
|
Net profit after tax
|
1,872
|
1,179
|
58.78%
|
|
Source: Central Re
|
AM Best ratings
Earlier this month, AM Best affirmed Central Re’s Financial Strength Rating of ‘A‘ (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ (Excellent). The outlook for these ratings is ‘Stable”.
The global credit rating agency said that the rating affirmation reflected Central Re’s strong balance sheet, adequate operating performance, favourable business profile and appropriate enterprise risk management.
AM Best also said that it expects Central Re to maintain a prudent investment strategy and mainly focus on low-risk, fixed-income investments.